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Market Cap

S$38.2m

Last Updated

2021/04/17 11:07 UTC

Data Sources

Company Financials

Executive Summary

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products in Singapore and Malaysia. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Khong Guan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Insufficient data to determine K03's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine K03's volatility change over the past year.


Market Performance


7 Day Return

-1.3%

K03

-1.5%

SG Consumer Retailing

0.4%

SG Market


1 Year Return

-3.9%

K03

0.8%

SG Consumer Retailing

22.1%

SG Market

Return vs Industry: K03 underperformed the SG Consumer Retailing industry which returned 0.8% over the past year.

Return vs Market: K03 underperformed the SG Market which returned 22.1% over the past year.


Shareholder returns

K03IndustryMarket
7 Day-1.3%-1.5%0.4%
30 Day8.8%1.9%3.7%
90 Day0.7%0.7%6.3%
1 Year-2.6%-3.9%5.3%0.8%27.7%22.1%
3 Year-25.3%-28.2%-26.6%-34.8%-0.2%-12.0%
5 Year-19.6%-24.9%-2.2%-17.9%20.9%-0.2%

Long-Term Price Volatility Vs. Market

How volatile is Khong Guan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Khong Guan undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K03 (SGD1.48) is trading below our estimate of fair value (SGD3.87)

Significantly Below Fair Value: K03 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: K03 is poor value based on its PE Ratio (32.3x) compared to the SG Consumer Retailing industry average (21.1x).

PE vs Market: K03 is poor value based on its PE Ratio (32.3x) compared to the SG market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate K03's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: K03 is good value based on its PB Ratio (0.6x) compared to the SG Consumer Retailing industry average (0.9x).


Future Growth

How is Khong Guan forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.0%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Khong Guan has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Khong Guan performed over the past 5 years?

-23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K03 has high quality earnings.

Growing Profit Margin: K03 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: K03's earnings have declined by 23.6% per year over the past 5 years.

Accelerating Growth: K03 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: K03 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (16.4%).


Return on Equity

High ROE: K03's Return on Equity (2.1%) is considered low.


Financial Health

How is Khong Guan's financial position?


Financial Position Analysis

Short Term Liabilities: K03's short term assets (SGD28.0M) exceed its short term liabilities (SGD6.2M).

Long Term Liabilities: K03's short term assets (SGD28.0M) exceed its long term liabilities (SGD378.0K).


Debt to Equity History and Analysis

Debt Level: K03 is debt free.

Reducing Debt: K03 has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

Debt Coverage: K03 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: K03 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Khong Guan current dividend yield, its reliability and sustainability?

1.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K03's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.87%).

High Dividend: K03's dividend (1.35%) is low compared to the top 25% of dividend payers in the SG market (4.62%).


Stability and Growth of Payments

Stable Dividend: K03's dividend payments have been volatile in the past 10 years.

Growing Dividend: K03's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), K03's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Soo Eng Chew (72 yo)

14.25yrs

Tenure

S$506,584

Compensation

Mr. Chew Soo Eng is Managing Director at Khong Guan Limited since January 11, 2007 and its Director since March 3, 2006. He has been the Managing Director at Khong Guan Flour Milling Limited since January ...


CEO Compensation Analysis

Compensation vs Market: Soo Eng's total compensation ($USD379.69K) is about average for companies of similar size in the SG market ($USD381.71K).

Compensation vs Earnings: Soo Eng's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: K03's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Khong Guan Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Khong Guan Limited
  • Ticker: K03
  • Exchange: SGX
  • Founded: 1960
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: S$38.203m
  • Shares outstanding: 25.81m
  • Website: https://www.khongguanlimited.com

Location

  • Khong Guan Limited
  • No. 03-01 Khong Guan Building
  • 2 MacTaggart Road
  • Singapore
  • 368078
  • Singapore

Listings


Biography

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products in Singapore and Malaysia. It is involved in the wholesale of wheat flour, biscuits, general goods, and ot...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/17 11:07
End of Day Share Price2021/04/16 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.